United Technologies slashes 11,600 jobs, defense sector under fire

United Technologies Corp. (UTX) became the latest big company to buckle under pressure from the worst economic crisis since the Great Depression.

The maker of Pratt & Whitney engines and Otis elevators today announced that it would slash 11,600 jobs and reduce its earnings guidance. Shares of the Hartford-based conglomerate, which Wall Street had liked much better than its neighbor General Electric Co. (GE), was up six percent to $39.82 in mid-morning trading. The severity of the economic slowdown caught United Technologies by surprise.

"The outlook for commercial aerospace and global construction markets has continued to deteriorate since UTC's December investor meeting and the economic recovery previously anticipated in the second half of 2009 now appears unlikely," said Chief Executive Officer Louis R. Chênevert in a company press release.

United Technologies is forecasting profit of $4 to $4.50, including 30 cents to 40 cents for the restructuring plan. That excludes one-time gains of $200 million to $350 million. In January, the company forecasted 2009 profit of $4.65 to $5.15 compared with 2008's $4.90.